New York-based private equity firm First Atlantic Capital has acquired a majority share in Michigan-based vehicle component maker BHM Technologies. It is the first acquisition by Atlantic’s fourth fund. BHM’s management, Lehman Brothers Co-Investment Partners and John Hancock Financial Services also took part in the transaction. Terms were not disclosed.
First Atlantic’s chairman and CEO, Roberto Buaron, said that the company is ripe for expansion. “Our focus is to build up companies, and this one, we believe, is a very good platform for continued internal expansion as well as add-on acquisition,” he said.
Emilio Pedroni, vice president at First Atlantic, agreed. “The company currently has 10 plants across the United States and we intend to support them in order for them to continue their growth,” he says. “The fact that they have plants across the country, and their flexible manufacturing, gives them a real advantage. So we intend to leverage this in order to gain market share.”
Buaron also pointed out that BHM’s management team will remain as is in the foreseeable future, as it was a key attraction for First Atlantic. “The management team is one of the main reasons why we are doing this deal,” he said. “We’re very, very impressed with them.”
First Atlantic has invested in companies in the packaging, plastics, industrial products, food processing, branded food– and sports and leisure industries. In 2002, the firm exited two companies in deals valued at more than $1 billion (€795,000) combined.
BHM has more than 3,000 employees and had more than $400 million in sales in 2005, with plants in the United States and Mexico. Its products include welded assemblies and tubular and exhaust hardware components for the light vehicle, construction and agricultural sectors.